What does this calculate?
Whether a pit stop pays off over the remaining laps: the time lost in the pit lane against the lap time gained on fresh tyres, then roughly how many track positions that is worth.
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Estimate whether a pit stop pays off: the pit-lane time lost versus the lap-time gained on fresh tyres over the remaining laps.
net time = pit lane loss − (fresh-tyre gain per lap × laps remaining)
Whether a pit stop pays off over the remaining laps: the time lost in the pit lane against the lap time gained on fresh tyres, then roughly how many track positions that is worth.
Because worn tyres lose grip and slow the car each lap. New tyres are faster, and that per-lap gain accumulates over a stint, which can outweigh the one-off pit loss.
By dividing the net time by the average gap between cars. Close-packed fields turn small time swings into position changes; spread-out races need bigger gains to move up.
The core trade-off is exactly this, but real teams also model traffic, safety cars, tyre warm-up and rivals' plans. This captures the central arithmetic.
Pitting earlier than a rival so your fresh tyres gain time while they are still on old ones, jumping them when they finally stop. This calculator shows the time logic behind it.